PT Penjaminan Infrastruktur Indonesia (Persero)/PT PII (Indonesian Infrastructure Guarantee Fund) and the Directorate General of Regional Financial Development, Ministry of Home Affairs, signed a cooperation agreement as a strategic step to strengthen the implementation of creative financing in regional infrastructure development in Indonesia. The signing took place during a series of events for the Socialization and Assistance for the Implementation of Cooperation between Regional Governments and Business Entities (KPDBU) throughout Bali Province, held in Denpasar, Bali, on Friday (July 17th).

The scope of this cooperation includes the development of policies that facilitate the implementation of various creative financing schemes, including KPDBU and other schemes developed by the Central Government; joint collaboration to facilitate support from donor agencies/development partners; monitoring the implementation of creative financing, including KPDBU, through debottlenecking activities, budgeting fiscal obligations, support for land acquisition, continued support from the Regional People's Representative Council (DPRD), support for regress rights settlement in accordance with their authority, and other commitments to project sustainability; and implementing activities that support the development and implementation of creative financing schemes, including KPDBU, for Regional Governments, businesses, and regional financing institutions.

Acting President Director of PT PII, Andre Permana, stated that the collaboration between PT PII and the Directorate General of Regional Financial Development at the Ministry of Home Affairs represents a synergy to strengthen the creative financing ecosystem for regional infrastructure development.

"This synergy is expected to facilitate regional governments' access to various financing schemes, including KPDBU (Special-Private Partnership) through strengthened policies, facilitation, and mentoring, so that more infrastructure projects can be realized sustainably," Andre concluded.

Andre also added that this collaboration demonstrates PT PII's commitment to expanding regional governments' access to innovative infrastructure financing alternatives. "We are optimistic that this will increase the trust and interest of regional governments in utilizing creative financing schemes to deliver quality infrastructure and deliver tangible benefits to the community," Andre explained.

Meanwhile, the Director General of Regional Financial Development at the Ministry of Home Affairs, A. Fatoni, stated that this synergy is expected to strengthen the capacity of regional governments to utilize various creative financing instruments to accelerate quality infrastructure development.

"We at the Ministry of Home Affairs continue to encourage creative financing through collaboration between local governments and business entities. This is crucial because it addresses several key issues for local governments," said Fatoni.

This three-year collaboration is also expected to yield quick wins in the form of accelerated mentoring for several Small-Scale Public Works and Buildings (KPDBU) projects, particularly in the Energy Conservation sector for Street Lighting Equipment (APJ) projects, which is expected to accelerate the implementation of creative financing at the regional level.

PT IIGF's presence at the Bali Province KPDBU Socialization and Attention event also demonstrates the company's commitment to supporting accelerated regional infrastructure development by increasing the capacity of local governments. On this occasion, PT IIGF shared experiences and best practices related to KPDBU project development with participants from various local governments in Bali Province.

As a form of support for infrastructure development in Bali Province, particularly to support priority government programs, PT IIGF actively provides mentoring for several infrastructure projects in cities and regencies across Bali Province by facilitating capacity building activities for local governments and implementing the Project Development Facility (PDF) provided by the Ministry of Finance. Several local governments The City and Regency levels that are currently being assisted to start the KPDBU stages include the Denpasar City Government, the Klungkung Regency Government, and the Tabanan Regency Government.

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